Hey everyone, I posted a thread similar to this a few months back however things have changed a little since. So I want to get feedback for what YOU would do if you were in my shoes. So as I've previously stated I have a duplex that is currently rented at $1,200 on one side and $1,150 on the other. I was going to kick out a renter to move in as I do want a place and renting some where else for the same price would be stupid, as I could just live in my own place and fix it up here and there in the mean time. Anyway my grandma's old house is for sale and for a pretty good price in my community as I've been through plenty of houses in my search and it being a private sale and also being family definitely makes it a bit more affordable. I will post the costs and my options below.
A) Move into duplex
Mortgage: $1800/mth ($3000/mth is my current mortgage, but less the $1,200 from renting one side out)
Taxes: $260/mth
Insurance: $94/mth
Total: $2,154/mth
B) Purchase house
Mortgage: $1751/mth (Based on a $200,000 mortgage at 2.65% for a 10 year amortization with weekly payments)
Taxes: $228/mth
Insurance: $80/mth
Duplex expenses: $1004/mth (paying the difference between the mortgage and rental income, taxes, and insurance)
Total: $3,063/mth
The difference between the two is $909/mth. Using the estimates above are assuming utilities and groceries will be the same for each place, which it shouldn't vary much anyway. Keep in mind the costs will be divided by two (it being me and my girlfriends place). But is that extra $909/mth worth the cost of having a $200,000 house paid off in 10 years? Or am I better of saving up for a bigger down payment to take down my principal early in the mortgage and maybe wait for the real estate market to cool off a little?
I'll leave it to the experts because I've tried talking to my parents and my girlfriend and no one can give insight. And I know I've posted a similar thread a few months back, but that was looking at houses in general. At the time of the posting I did not have the option buy a $200,000 house (most were $300k and higher). Also my mortgage does not have to be a 10 year mortgage, but I like paying things off as fast as I can so the term can change for the house should I decide to buy it. I can also put $30k down but did not calculate it with a $30k down payment. As I would like to fix up a few things at the duplex and at my grandma's place should I buy it. Anyway I really hope some experts can chime in and point me in the right direction. Thanks for taking the time to read this.
A) Move into duplex
Mortgage: $1800/mth ($3000/mth is my current mortgage, but less the $1,200 from renting one side out)
Taxes: $260/mth
Insurance: $94/mth
Total: $2,154/mth
B) Purchase house
Mortgage: $1751/mth (Based on a $200,000 mortgage at 2.65% for a 10 year amortization with weekly payments)
Taxes: $228/mth
Insurance: $80/mth
Duplex expenses: $1004/mth (paying the difference between the mortgage and rental income, taxes, and insurance)
Total: $3,063/mth
The difference between the two is $909/mth. Using the estimates above are assuming utilities and groceries will be the same for each place, which it shouldn't vary much anyway. Keep in mind the costs will be divided by two (it being me and my girlfriends place). But is that extra $909/mth worth the cost of having a $200,000 house paid off in 10 years? Or am I better of saving up for a bigger down payment to take down my principal early in the mortgage and maybe wait for the real estate market to cool off a little?
I'll leave it to the experts because I've tried talking to my parents and my girlfriend and no one can give insight. And I know I've posted a similar thread a few months back, but that was looking at houses in general. At the time of the posting I did not have the option buy a $200,000 house (most were $300k and higher). Also my mortgage does not have to be a 10 year mortgage, but I like paying things off as fast as I can so the term can change for the house should I decide to buy it. I can also put $30k down but did not calculate it with a $30k down payment. As I would like to fix up a few things at the duplex and at my grandma's place should I buy it. Anyway I really hope some experts can chime in and point me in the right direction. Thanks for taking the time to read this.